Qualified veterans can certainly take advantage of the great resources offered in a VA loan program. Meeting certain requirements can enable you to receive some fantastic benefits for the purchase of a home.

Since the United States Department of Veterans Affairs offer many benefits to members of our armed forces, it is no wonder that home loans are one of the perks as well. These types of loans are not provided by the government. They are available through banks and mortgage companies. The job of the VA basically protects the lender against loss in the event the owner is not able to pay back their VA mortgage loan.

In order to qualify for a VA home loan you need to meet certain criteria. These factors are set by the Veterans Affairs office and you may request a certificate of eligibility yourself or with the help of your lender. If you are approved for a VA home loan, a number of benefits may be at your disposal. These would include such things as no down payment, lower interest rates, no mortgage insurance premiums, lower closing costs, no pre payment penalties and/or the possibility of an assumable mortgage.

It is important to remember that a loan such as this can only be used for a residence that will be occupied by the veteran. It must be the primary residence and a VA loan is not considered for investment property.

This type of loan however can be used to not only purchase a home, but to build a home as well. A VA loan can be acquired to make home improvements and can also be used to refinance a home loan as well.

Probably the best part of the VA loan program is that most all veterans are eligible for these benefits. This can often be the best choice of loan type when wanting to purchase a home, especially as a first time homebuyer.

Tags: VA loans

Label: Understanding VA Home Loans